Defence stocks such as Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL) are in focus on Wednesday morning after the Defence Acquisition Council (DAC)accorded Acceptance of Necessity (AoN) for five capital acquisition proposals amounting to over Rs 21,772 crore.
DAC granted AoN for the procurement of 31 New Water Jet Fast Attack Crafts (NWJFACs) for the Indian Navy. These are designed to perform the task of low intensity maritime operations, surveillance, patrol, and search and rescue (SAR) operations close to coast, a statement read. In addition, the vessels are seen playing an effective role in anti-piracy missions, especially in and around our Island territories.
Elara Securities in a recent note said that the capex pipeline for strategic sectors such as defence remains robust. It felt the investor apprehension regarding the turnaround in PSUs is unfounded as it believes that moderating trend of government capex so far this year is transient.
DAC also accorded AoN for procurement of 120 Fast Interceptor Craft (FIC-1). These vessels are capable to perform multiple roles, including escorting high value units such as aircraft carriers, destroyers, and frigates, submarines for coastal defence.
AoN for procurement of Electronic Warfare Suite (EWS) comprising External Airborne Self Protection Jammer pods, Next Generation Radar Warning Receiver and associated equipment for Su-30 MKI Aircraft was accorded by DAC. This system will enhance the operational capabilities of SU-30 MKI and protect it from enemy radars and related weapon system while carrying out a mission against enemy targets protected by Air Defence systems.
DAC also accorded AoN for procurement of 6 Advanced Light Helicopters (ALH) M (MR) for Indian Coast Guard. It has also accorded approval for the overhaul of T-72 & T-90 tanks, BMP- and engines of Sukhoi fighter aircraft which will enhance the service life of these assets.
Meanwhile, Navy chief Admiral Dinesh Tripathi on Monday reportedly said warships and a diesel-electric submarine are under construction at various Indian shipyards, and that the government has approved a project to build two nuclear-powered submarines.
Cochin Shipyard recently said it has signed a contract with the Ministry of Defence (MoD), the government of India, for short refit and dry docking of a large Indian naval vessel.